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Print[Ferro-alloys.com]The reformation of electric power system launched in 2002 had continued for more than ten years in China. Never an industrial reform had faced so much compromise, controversy and difficulty like electric power reform. Only plant-grid separation was realized successfully. Main-supplement separating project left much industry concern. There was still no timetable for separation of transmission and distribution. Competitive bidding was far away and not within the foreseeable future.
The main trend of electricity power industry reformation was unbundling, that is, from a highly monopolized system to a controlled competitive mechanism. Macro reform would be aimed at reducing government regulation and let the market play a role. Market-oriented direction in power system reform would not be changed. However, competition could not be formed quickly by reform in system and mechanism, so only benchmark electricity price policy applied to China in the short term.
At this stage of development, the government might believe it was not time for complete electricity market renovation. First, in the countries where electricity industry reform had been finished, power consumption did not increase basically. However, power consumption of China increased by 7% every year and this increase might not be met after reformation. Second, macro private system had existed in these countries like private power plants. China did not have this mechanism and this mode could not be applied directly.
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